European stocks climbed for a third day, supported by improving Chinese economic data and positive results coming from retailers. US equity futures advanced and the euro strengthened.
Ocado Group Plc rallied after the UK grocery delivery company reported a strong surge in sales. Hennes & Mauritz AB jumped after beating profit estimates. European government bonds fall.
The offshore yuan climbed to the highest level in a year and stocks in Shanghai advanced on evidence that China is accelerating out of the virus slump. Retail sales rose for the first time this year in August and industrial production expanded.
Oil held near $37 a barrel before US government data that’s forecast to show higher crude inventories. Gold ticked up and the dollar was steady.
Investors are awaiting the Federal Reserve’s policy meeting Wednesday to gauge the outlook for markets following a slide of about 2% in global stocks this month. The Fed is expected to maintain its dovish stance after earlier saying it will shift to a more relaxed approach on inflation. Central bank largesse is shoring up sentiment in the face of risks from the pandemic, the US presidential election and the possibility of a no-deal Brexit.
“Market volatility is returning after months of steady advances in risk assets,” BlackRock Investment Institute strategists led by Elga Bartsch said. “Valuations have risen, and we could see greater volatility as a result, especially as the US election closes in.”
Elsewhere, the Australian dollar led an advance among Group-of-10 currencies after the central bank’s latest minutes showed it didn’t plan to ease further anytime soon.
Futures on the S&P 500 Index advanced 0.5% as of 9:46 am London time and the Stoxx Europe 600 Index increased 0.4%.
While the MSCI Asia Pacific Index climbed 0.1%, the MSCI Emerging Market Index gained 0.5%.
The Bloomberg Dollar Spot Index dipped 0.1% and the euro gained 0.2% to $1.1884.
While the British pound advanced 0.3% to $1.2883, the Japanese yen was little changed at 105.76 per dollar. The offshore yuan strengthened 0.5% to 6.7762 per dollar.
The yield on 10-year Treasuries advanced less than one basis point to 0.68% and The yield on two-year Treasuries was unchanged at 0.14%. Germany’s 10-year yield gained less than one basis point
While Britain’s 10-year yield jumped two basis points to 0.215%, Japan’s 10-year yield was unchanged at 0.021%.
West Texas Intermediate crude gained 0.6% to $37.49 a barrel and Brent crude increased 0.4% to $39.85 a barrel. Gold strengthened 0.3% to $1,962.78 an ounce.